Notice of Suspension of Energy Storage Project

Can a project be suspended?

Project suspension is no exception, and therefore, you should be aware of the circumstances under which an owner may suspend a project and what your rights are when it occurs. (2) Require written notice from the owner: Insist that the owner document the suspension of the project in writing.

What causes a construction project to suspend?

Suspension can occur for a number of reasons, but generally arises when the owner has a problem with project financing or encounters some unexpected issue during construction that requires major changes in the scope of the work.

Can a contractor suspend a project?

On every project, a contractor should review its contract and prepare a list of key deadlines and notices required to preserve claims for additional compensation. Project suspension is no exception, and therefore, you should be aware of the circumstances under which an owner may suspend a project and what your rights are when it occurs.

How does project suspension affect a contractor's bottom line?

Project suspension may alleviate the owner's short term financial problems, but it has a real impact on every contractor's bottom line. In today's market, every contractor has to be prepared to deal with project suspension and must have a game plan in place to mitigate its impact on the company.

What should a subcontractor do if a project is suspended?

(7) Notify subcontractors: If you are serving as the general contractor, immediately notify all subcontractors of the project suspension. A properly drafted subcontract should allow a contractor to suspend the subcontract to the same extent the owner has the ability to suspend construction under the prime contract.

Can a contractor recover costs incurred due to project suspension?

Most contracts will allow a contractor to recover costs incurred due to project suspension.